What liability balance does the company report at the end

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Question - A zero coupon bond with a face value of $800,000 is issued on January 1, Year One. It will mature in eight years and was issued for $541,470 to earn an annual effective rate of 5 percent. If the straight-line method is used, what liability balance does the company report at the end of Year Two (rounded)? Be sure to show your work!

Reference no: EM132849025

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